UK & EU

UK Should Leave European Union

UK Should Leave European Union

Chapter 01-Introduction

Background of the Problem

For years British governments have refused demands for a proper inquiry into the costs and benefits of our EU membership, presumably because it would show how inimical to our interests it has been. The recent Close Brothers Business Barometer has shown that as many as 38% of North East SMEs believe that the UK should leave Europe (Bennett, 2007, pp. 252-257).

Ignoring the irony that the term SME is entirely a construct of European law, this figure is not surprising and is slightly higher than the national average. The survey highlights that 32% of all SMEs simply want to leave the European Union, but a larger and more considered 58% believe that struggling European economies would harm the economy of United Kingdom (Minford & Mahambare, 2005, pp. 1-10).

These statistics are timely, given the debate over whether or not there should be a referendum on the subject. It should however be noted that 46% of SMEs surveyed stated that United Kingdom should stay in the European Union as the State would potentially isolate itself as a country if UK has to leave. As with all statistics there is a need to analyze what these potentially conflicting messages can tell us. For example, given the North East has a higher pro rata percentage of SMEs than any other region in the UK, it is not surprising that more SMEs in the North East were opposed to Europe. This is particularly pertinent as the concept of Europe is synonymous with red tape in the eyes of SMEs (http://debatewise.org/).

Purpose of The study

This study will find out the causes on the basis of which it can be found out that whether United Kingdom should leave European Union or not. This study will focus on the positive as well as negative aspect for United Kingdom after leaving European Union with respect to political, economical and financial environment.

Research Aims and Objectives

This study aims to find out following things:

The role of UK in European Union.

The positive aspect of United Kingdom without European Union.

The negative effect for United Kingdom for leaving European Union.

Research Questions

What is the role of UK in European Union?

What is the positive aspect of United Kingdom without European Union?

What is the negative effect for United Kingdom for leaving European Union?

Hypothesis

H0= United Kingdom should leave European Union.

H1 = United Kingdom should not leave European Union.

Chapter 02-Literature Review

A significantly higher proportion of businesses felt leaving Europe would have an isolating effect. Again this will be more acute in the North East as it is the only region in the UK to export more than it imports and its largest trading partner is Europe. The fact that 58% of those surveyed felt the weaker accession states and the Southern European economies could affect the UK economy would be accurate if we were part of the European Monetary Union, which thankfully we are not (Minford & Mahambare, 2005, pp. 1-10). In 2012 the UK's contribution to Europe ...